Ex-India pellet prices remained stable but no deals were reported for the second consecutive week with mills in China having completed restocking and stray bids received were too low for sellers to confirm trades, SteelOrbis learned from trade and industry circles on Friday, February 2.
Ex-India pellet prices remained unchanged in the range of $132-137/mt CFR China but bids received were at $125/mt CFR as the highest.
Furthermore a tender based export offer for 50,000 mt floated by a government run pellet producer could not be completed within the deadline as bids were too low and no confirmation was available from the seller whether the tender would be re-floated.
“There were no reports of any deals in the market because mills in China had completed restocking well ahead of the Lunar New Year holidays. Also finished steel prices remain in uncertain zone and mills unsure of improving margins are cautious in building higher priced raw materials,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“The prices being quoted now are only notional in the absence of actual deals. Bid-offer gap is seen to be widening indicating that the market faces further downside risks once business activity resumes in China after the holidays,” he said.